1 Horse Guards Road, 
Information Rights Unit 
London. 
 
SW1A 2HQ 
Tel: 020 7270 4558 
 
Fax: 020 7451 4861 
Kathleen Siddall 
[HM Treasury request email]  
 
 www.hm-treasury.gov.uk 
By email to: 
 
Request-11741-a42f34db@whatdothey 
Our ref:  
IRU/9/421 
know.com 
 
   
 
 
8 June 2009 
Dear Ms Siddall, 
 
    
FREEDOM OF INFORMATION ACT REQUEST: KAUPTHING, SINGER & 
FRIEDLANDER IOM 
 
Thank you for your email dated  9  May  2009  which we received  on 11  May. You 
asked, under the Freedom of Information Act 2000: 
 
‘… why has the Treasury allowed Mr Dave Whelan to have his money â€˜unfrozen’ 
in direct contradiction to what Mr Darling said. 
 
Why is there a rule for one and not another? 
 
Why can’t all the innocent depositors have their funds released? 
You have asked questions in your correspondence, rather than made requests for 
recorded information.  Your rights under the Act are to recorded information. The 
Information Commissioner has published some advice for requesters, which 
highlights the difficulties associated with enquiries of this sort, and includes pointers 
on how to frame a request for the best prospects of success; a link to this is below: 
http://www.ico.gov.uk/upload/documents/library/freedom_of_information/practical_applic
ation/fop100_how_to_make_a_request_v1.pdf.   
Although you have not made a request for recorded information, in the spirit of the 
Act, we have sought to identify recorded information that would address the 
questions you have raised.    
 
We are happy to explain the process for dealing with claims from depositors of 
Kaupthing Singer & Friedlander (KSF).    
 
KSF is a UK-based banking subsidiary of the Icelandic bank Kaupthing and is 
regulated by the Financial Services Authority (FSA). On 8th October 2008 the FSA 
determined that KSF no longer met its threshold conditions, and was unlikely to be 
able to continue to meet its obligations to depositors. The FSA, in the exercise of its 
regulatory functions, concluded that KSF was in default for the purposes of the 
Financial Services Compensation Scheme (FSCS). The Treasury has used the 
Banking (Special Provisions) Act 2008 to ensure a resolution that preserves financial 
stability and provides protection and continuity for depositors.  
 
 

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KSF’s Edge deposit business has been transferred to ING Direct, a wholly-owned 
subsidiary of ING Group. The transfer of the retail deposit accounts has been backed 
by HM Treasury and the FSCS.  
 
Following due legal process, the remainder of KSF’s business was put into 
administration.  Any depositors eligible to claim under the FSCS whose accounts 
have not been transferred to ING Direct are being paid out in full through the FSCS.   
Please see the link below for details: 
 
http://www.hm-treasury.gov.uk/press_103_08.htm 
 
In relation to claims covered by the FSCS, the FSCS is independent of the Treasury 
and ultimately has sole responsibility for determining whether a depositor meets the 
necessary eligibility criteria under its rules.  
 
The FSCS has sent out compensation claim forms to all KSF savers who did not 
transfer to ING Direct that they have records for. The FSCS claims teams have been 
processing the application forms received back from savers. The priority is to pay 
eligible retail depositors their compensation as quickly as possible after receiving a 
completed application. Eligible depositors of KSF have been getting their money 
back.  
 
In relation to your request about Mr Whelan, information relating to the financial 
affairs of individuals is personal data.  We consider that to reveal whether or not the 
Treasury holds information in relation to the financial affairs of Mr Whelan, or any 
other individual, would breach the first data protection principle â€“ that information be 
processed fairly and lawfully.  In accordance with section 40(5)(b)(i) of the Freedom 
of Information Act we are therefore unable to confirm or deny whether the Treasury 
holds information falling within the scope of your request.   
 
If you have any queries about this letter, please contact us at the email account given 
in the header to this letter.  It would help us, if you could remember to quote the IRU 
reference number (also in the header) in any future communications.   
 
Yours sincerely, 
 
 
 
Information Rights Unit 
For HM Treasury 
 
 
 
Your Rights to Complain under the FOI Act 
 
If you are not happy with this response, you may request a review by writing to HM Treasury, Information 
Rights Unit, 2/S2, 1 Horse Guards Road, London SW1A 2HQ. Email [email address]  
 
Any review request must be made within 2 months of the date of this letter.   
 
 
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It would assist our review if you set out which aspects of the reply concern you and why you are 
dissatisfied.   
 
If you are not content with the outcome your complaint, you may apply directly to the Information Commissioner 
for a decision. Generally, the ICO cannot make a decision unless you have exhausted the complaints 
procedure provided by the Treasury. The Information Commissioner can be contacted at: The Information 
Commissioner’s Office, Wycliffe House, Water Lane, Wilmslow, Cheshire SK9 5AF. 
 
 
 
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